There are no changes to any of the iShares models this week. Last week, the basic materials sector moved into the top four spots in the DALI domestic equity rankings. Those looking to take advantage of the strength of this sector should consider the iShares US Basic Materials ETF IYM. IYM currently has a favorable 4.15 fund score, 0.18 points better than the average for all materials sector funds. On its default chart. IYM has given four consecutive buy signals and sits one box away from giving a fifth with a double top breakout at $114. Which would also mark a new all-time high for the fund. Year-to-date (through 12/9) the fund gas generated a price return of 14.63%. With weekly overbought/oversold reading of 69%, IYM is verging on heavily-overbought territory, so those interested in adding exposure should may be best served to do so on a slight pullback. IYM has most recently found support at $106, with additional support found at $95.  

This section of the report categorizes select iShares Fixed Income and Currency ETPs by their respective fund groups. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time with an "average level" to give us a general picture of whether the iShare ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong market ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. 

Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell. The Distribution Curve below displays those ETFs with positive RS in uppercase letters and those ETFs with poor RS versus the market in lowercase letters. As well, those ETFs that are on a Point & Figure Buy signal appear in Green letters, while those on Sell signals can appear in Red letters. Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

Average Level

85.31

											iak
											ITA
											ezu
											mxi
											ign
											ieo
											ewk
											ewq
											iyz
											ewc
											indy
											erus
											ewi
											ewu
											efa
										RXI	ige
										ech	ewj
										SOXX	ewa
										IYJ	epp
										eis	ilf
										eem	IJR
										eww	epol
									ewg	tur	ixg
									gsg	dvy	wood
									eza	iyk	ixc
									IYC	ewz	eufn
								IXJ	IYY	emif	eems
								IHE	iyt	iat	ewt
								IXN	iym	epu	iez
								ICLN	enzl	iyg	ewp
								kxi	ewh	IJH	IAI
						jxi		IBB	ixp	ewn	eido
						icf		ewl	igf	exi	thd
				IAU	idu	IHI	IGV	ihf	ewm	iev	ewy
				ITB	SLV	fxi	bkf	IVV	ewd	ews	ewo
<--100	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

This section of the report categorizes select iShares ETFs by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

Weekly Updates: No changes.